A crypto friendly bank has managed to raise $10 million from major crypto players. The bank which will be located in Malta secured the money from lead investors which comprise of Binance and Polychain Capital and will start operations from next year.
The bank which is known as Founders Bank will be co-founded by Paula Pandolfino. According to CoinDesk, the bank also secured the backing of Carduus Asset Management.
Although it is not clear the amount every investor contributed, Pandolfino stated that the bank is looking forward to raise an additional $30 million in the near future.
Pandolfino explained that cryptocurrencies will take over the finance industry and as such it is important to have a bank that will fully support the sector. She added that Founders bank aspires to be a major pillar within the banking sector focusing majorly on crypto based projects and startups. The co-founder also stated that the bank is in the process of changing how the conventional banking conducts its operations.
Currently, the bank is still waiting for the European Union banking certification and initially planned to get funding through equity tokens. However, to speed up the licensing process the idea of equity tokens was abandoned to ensure that there are minimal regulatory aspects.
According to Polychain president, Joe Eagan, the decision to fund the bank was as a result of personal experience after his company had challenges to get a banking partner in 2016. Eagan explained that while the situation has changed after several banks like Metropolitan Bank and Silvergate started to serve the crypto space, there is still room for more players and Founders can help to bridge the gap.
Malta has been working hard to market herself as a blockchain hub and has managed to attract some of the largest companies in the industry. The country is currently dubbed as the Blockchain Island and has so far passed three bills that seek to come up with a regulatory framework and encourage innovation in the blockchain space.
The passing of the three legislative bills made the country the inaugural nation to come up with a legal framework to guide the nascent blockchain industry.